Jul 19, 2011

Danareksa helps KIJA rights issue

Property developer PT Jababeka Tbk (KIJA) may pick PT Danareksa Sekuritas as an underwriter of its rights issue in a bid to raise funds which will be used to refinance US$35 million debt to PT Bank CIMB Niaga Tbk.

"We are managing the rights issue of Bank Danamon, Jababeka, and another bank," said Danareksa President Director Marciano Hersondrie Herman as quoted by Bisnis Indonesia today.

According to a research released by UBS Securities on June 30, analysts Tim Alamsyah and Felicia Tandiyono said Jababeka requires Rp1 trillion from a combination of rights issue and bond issuance.

If Jababeka might hold rights issue, the ratio would be 1:1. The proceed will be used by Jababeka to settle US$40 million debt to CIMB Niaga.

Jababeka Corporate Secretary Muljadi Suganda said the company is still reviewing the financing options. "There is no certain decision. We are exploring the options and we haven't picked any underwriter," he said.